Financials Essential Utilities, Inc.

Equities

WTRG

US29670G1022

Water Utilities

Market Closed - Nyse Other stock markets 04:00:01 2024-05-17 pm EDT			5-day change	1st Jan Change
39.67 ^USD	+0.66%		+2.29%	+6.21%

May. 06	Baird Adjusts Price Target on Essential Utilities to $43 From $44, Maintains Outperform Rating	MT
May. 03	Essential Utilities Unit Begins $4 Million Water Main Replacement Project in Texas	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	10,132	11,599	13,570	12,519	10,203	10,780	-	-
Enterprise Value (EV) ¹	11,348	17,308	19,618	19,335	17,265	18,338	18,852	19,488
P/E ratio	45.1 x	42.2 x	32.1 x	27 x	20.1 x	19.1 x	18.7 x	17.8 x
Yield	1.93%	2.05%	1.93%	2.33%	3.18%	3.22%	3.43%	3.66%
Capitalization / Revenue	11.4 x	7.93 x	7.23 x	5.47 x	4.97 x	5.13 x	4.47 x	4.16 x
EV / Revenue	12.8 x	11.8 x	10.4 x	8.45 x	8.41 x	8.73 x	7.82 x	7.51 x
EV / EBITDA	22.8 x	23.4 x	21.8 x	19.7 x	16.7 x	15.7 x	14.3 x	13.3 x
EV / FCF	-	-52.8 x	-52.2 x	-41.8 x	-65 x	-426 x	-55.9 x	-69.6 x
FCF Yield	-	-1.89%	-1.92%	-2.39%	-1.54%	-0.23%	-1.79%	-1.44%
Price to Book	2.67 x	2.48 x	2.67 x	2.34 x	1.73 x	1.74 x	1.66 x	1.58 x
Nbr of stocks (in thousands)	215,841	245,272	252,743	262,291	273,166	273,524	-	-
Reference price ²	46.94	47.29	53.69	47.73	37.35	39.67	39.67	39.67
Announcement Date	2/26/20	2/24/21	2/23/22	2/27/23	2/22/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	889.7	1,463	1,878	2,288	2,054	2,100	2,412	2,594
EBITDA ¹	496.6	740.3	900.7	982.4	1,036	1,169	1,323	1,460
EBIT ¹	340.2	483.3	602.7	661.2	692.1	830.7	930.3	1,043
Operating Margin	38.23%	33.04%	32.09%	28.9%	33.7%	39.55%	38.57%	40.22%
Earnings before Tax (EBT) ¹	211.5	265	422	450.9	431.8	558.8	648.5	705.3
Net income ¹	224.5	284.8	431.6	465.2	498.2	569.2	599.1	650.9
Net margin	25.24%	19.47%	22.98%	20.33%	24.26%	27.1%	24.84%	25.09%
EPS ²	1.040	1.120	1.670	1.770	1.860	2.073	2.125	2.231
Free Cash Flow ¹	-	-327.6	-375.8	-462.5	-265.5	-43	-337.4	-280
FCF margin	-	-22.4%	-20.01%	-20.21%	-12.93%	-2.05%	-13.99%	-10.8%
FCF Conversion (EBITDA)	-	-	-	-	-	-	-	-
FCF Conversion (Net income)	-	-	-	-	-	-	-	-
Dividend per Share ²	0.9066	0.9700	1.038	1.110	1.188	1.278	1.362	1.452
Announcement Date	2/26/20	2/24/21	2/23/22	2/27/23	2/22/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	535.7	699.3	448.8	434.6	705.4	726.4	436.7	411.3	479.4	612.1	444.7	423.7	516.8	818	454
EBITDA	215.9	306	216.9	208.6	250.9	-	-	-	-	-	-	-	-	-	-
EBIT	139.6	227.6	137.7	125.9	170	-	155.2	-	174	230.7	-	-	-	-	-
Operating Margin	26.06%	32.55%	30.69%	28.96%	24.09%	-	35.55%	-	36.29%	37.69%	-	-	-	-	-
Earnings before Tax (EBT)	-	-	90.39	73.44	104.9	-	91	76.36	104.6	255.1	-	-	-	-	-
Net income ¹	116.5	199.4	82.29	68.64	114.9	191.4	91.27	80.08	135.4	265.8	99.16	88.79	164.2	-	-
Net margin	21.75%	28.51%	18.34%	15.79%	16.29%	26.35%	20.9%	19.47%	28.25%	43.42%	22.3%	20.96%	31.76%	-	-
EPS ²	0.4400	0.7600	0.3100	0.2600	0.4400	0.7200	0.3400	0.3000	0.5000	0.9700	0.3606	0.3182	0.5320	0.6900	0.4800
Dividend per Share ²	0.2682	0.2682	0.2682	0.2870	0.2870	0.2870	0.2870	0.3071	0.3071	-	0.3171	0.3270	0.3270	0.3475	0.3475
Announcement Date	2/23/22	5/9/22	8/3/22	11/7/22	2/27/23	5/8/23	8/7/23	11/6/23	2/22/24	5/2/24	-	-	-	-	-

¹USD in Million²USD

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	1,216	5,709	6,048	6,816	7,062	7,558	8,072	8,708
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.449 x	7.712 x	6.715 x	6.939 x	6.818 x	6.466 x	6.104 x	5.963 x
Free Cash Flow ¹	-	-328	-376	-462	-266	-43	-337	-280
ROE (net income / shareholders' equity)	7.62%	6.65%	8.75%	8.81%	8.84%	8.84%	8.99%	9.16%
ROA (Net income/ Total Assets)	-	-	3.04%	3.06%	3.06%	3.1%	3.1%	3.2%
Assets ¹	-	-	14,182	15,189	16,280	18,360	19,326	20,339
Book Value Per Share ²	17.60	19.10	20.10	20.40	21.60	22.70	23.90	25.10
Cash Flow per Share	1.580	2.210	2.900	3.050	2.980	-	-	-
Capex ¹	550	836	1,021	1,063	1,199	1,390	1,532	1,457
Capex / Sales	61.85%	57.13%	54.34%	46.45%	58.38%	66.16%	63.53%	56.16%
Announcement Date	2/26/20	2/24/21	2/23/22	2/27/23	2/22/24	-	-	-

¹USD in Million²USD

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Essential Utilities, Inc.

Trading Rating

Investor Rating

ESG Refinitiv

B-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

39.67 USD

Average target price

44 USD

Spread / Average Target

+10.90%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Water Utilities

	1st Jan change	Capi.
ESSENTIAL UTILITIES, INC.	+6.21%	10.78B
COMPANHIA DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP	+4.23%	10.63B
SEVERN TRENT PLC	+2.56%	9.94B
CALIFORNIA WATER SERVICE GROUP	+2.74%	3.08B
CHENGDU XINGRONG ENVIRONMENT CO., LTD.	+29.88%	3.05B
BEIJING CAPITAL ECO-ENVIRONMENT PROTECTION GROUP CO., LTD.	+10.04%	2.98B
AMERICAN STATES WATER COMPANY	-2.65%	2.93B
PENNON GROUP PLC	-4.19%	2.59B
JIANGXI HONGCHENG ENVIRONMENT CO.,LTD.	+21.66%	1.89B
AGUAS ANDINAS S.A.	-5.63%	1.78B

Other Water Utilities